the firm currentily uses 50,000 workers to produce 200,000 units of ouput per day. The daily wager per worker is $80, and the pirce of the firms out put is $25. The cost of other variable inputs is $400,000 per day. Although you do not know the firms fixed cost, you know that it is high enough that the firms total costs exceed it total revenue
assume that total fixed cost equals $1,000,000 calclate the values for the following four formulas.
total variable cost- (number of workers *workers daily wages) + other variable costs
average variable cost = total variable cost/units of output per day
average total cost= (total variable cost + total fixed cost) / units of output per day
worker productivity = units of output per day/ number of workers
then assume that the total fixed cost equals $3,000,000 and recalcuate the values of the four variables listed above